Seattle Luxury Home Sales Drop 15% as AI Layoffs and 9.9% Tax Hit Demand
Updated
Updated · The Seattle Times · Sep 7
Seattle Luxury Home Sales Drop 15% as AI Layoffs and 9.9% Tax Hit Demand
2 articles · Updated · The Seattle Times · Sep 7
Summary
Seattle’s top 5% housing market posted a 15% year-over-year drop in pending sales in the three months through July, the steepest decline among major U.S. metros, even as U.S. luxury pending sales rose 2.6%.
AI-driven job cuts at Microsoft, Amazon and Meta are colliding with Washington’s higher taxes on wealthy residents, including a new 9.9% levy on households earning more than $1 million, sapping urgency among upscale buyers.
In Seattle’s six priciest suburbs, homes above $2 million averaged 44 days on market in the first half, up from 25 days in 2025 and nine in 2022, with sellers cutting prices and offering financing help.
The weakness contrasts with San Francisco, where the AI boom has lifted housing; Seattle drew $1.5 billion in second-quarter venture capital versus $98.6 billion for the Bay Area, limiting startup-led job creation.
The slowdown is feeding out-migration among affluent households toward lower-tax states such as Arizona and Nevada, raising questions about Seattle’s long-term appeal as a tech alternative to California.